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by Tom Cutler, Contributing Editor Posted on Tuesday, March 20, 2007 6:50:00 PM   | Abstract: | Few ERP packages recognize the requirements of the sector, which have much to do with compliance and the lot tracking demanded by various regulations. |
| Keywords: | Specialty chemicals, ERP, batch tracking, quality control, compliance reporting, production scheduling, MRP, lot control and tracking, laboratory and formulation, materials planning |
Addressing the needs of specialty chemical manufacturers is tricky. Few ERP (enterprise resource planning) solutions provide the kind of data tracking and audit trails that support compliance with governmental regulations. These prescribed manufacturing processes, material handling, and reporting functions are mandated within the specialty chemicals industry. Beyond compliance, ERP solutions that aim to meet the needs of chemical manufacturers must recognize both make-to-order and off-the-shelf products. Systems must manage formula and packaging revisions, guaranteeing control of the version in production as well as prior versions (to be recreated in the future). Quality control throughout a chemical manufacturing operation must also include purchase receipts and sales shipments and be available at any stage of production. Critical reports for the specialty chemical industry include certificates of analysis (COA), bills of lading, and material safety data sheets. Specialty chemical companies require ERP functionality with the following key product features: - Laboratory and Formulation: Conducts laboratory analysis with formula revisions.
- Compliance Reporting: Creates MSDS and other shipping and material storage compliance reports.
- Quality Control: Integrated QC in purchasing, receiving, sales shipping, and in any stage of production.
- Production Scheduling: MPS schedules production in order to maximize capacity while fulfilling shipping promises.
- Materials Planning: MRP manages inventory, reducing holding costs without the risk of shortages.
- Lot Control and Tracking: Tracks lots from vendor to customer; features must include expiration date, vendor lot number, quarantine date, and material attributes.
Laboratory and Formulation: According to Dr. Sahib Dudani, president of ERP provider BatchMaster, "Very few ERP systems provide a laboratory module." A system that does, he says, "reduces man-hours spent on tedious, error-prone manual calculations, and delivers useful information quickly and accurately." In BatchMaster, "raw material specifications and formula physical properties are user-definable, so users can perform calculations in the most familiar methods," Dudani notes. "Formulas can be easily sized by weight or by volume to lab- or production-sized batches," adds Doug Miller, lab manager for Weyerhaeuser Corp.'s Specialty Products Division, and a user of BatchMaster. "This feature enables chemical manufacturers to keep complete records of all versions of a formula, with who, why, and when it was changed." William Stoltz, controller and information technology director of Alpha Chemical Services, Inc., also uses BatchMaster. "The solution is versatile in its reporting potential, with a virtually infinite range of customizable reports," he reports. "We have been able to produce information with pinpoint accuracy for our management." Compliance Reporting: Nowhere is this customized report functionality more important than in meeting the specific and stringent compliance requirements of the industry. Offering an MSDS/compliance module provides powerful features that will automatically generate material safety data sheets in full compliance with the OSHA Hazard Communication Standard, SARA Title III, ANSI, and all similar government reporting requirements. A compliance module is designed to accommodate any required changes to meet new regulations immediately, without the need for a program update. Quality Control: Quality Control for chemical manufacturers must be versatile and offer support for every phase of the operation, from receipt and acceptance of raw materials, through production of intermediates, to inspections of finished goods before shipment. Chemical manufacturers must conduct order/post inventory testing, and inspection without tracking (sampling). A quality control module must govern specific target values, control limits, and the maximum allowable defects with critical reports for formula test and production output. Technology for this sector must have the ability to analyze quality information over a period of time, based off inventory SKU, formula identifier, vendors, and other key components. Page : 12 ... NEXT |